UPI Transactions to have a 4-Hour Reversal Window to tackle Frauds

New Delhi:

In a significant move to combat online fraud, the Modi government is reportedly considering a pivotal decision that could enhance the security of digital transactions.

- Advertisement -

The proposed measure aims to introduce a four-hour window for users to reverse UPI transactions,

providing an added layer of protection against fraudulent activities.

- Advertisement -

Addressing Financial Frauds:

With a surge in reported cases of financial fraud, the government is taking proactive steps to fortify digital payment systems.

The proposed time limit would apply to digital transactions exceeding Rs 2,000 conducted through IMPS, RTGS, and UPI.

- Advertisement -

4-Hour Reversal Window Mechanism

According to an official statement, the envisioned mechanism involves granting users a four-hour window after the initial payment to revise or reverse the transaction.

This approach mirrors the National Electronic Fund Transfer (NEFT) system, where transactions are processed after a stipulated time.

- Advertisement -

The government is considering exempting transactions below Rs 2,000

from this time limit to ensure minimal disruption for small-scale purchases like groceries.


Aligning with UPI Payment Norms:

The proposed four-hour window aligns with the existing UPI payment limit for new users.

Similarly, when a user initiates a new UPI account, they can send up to Rs 5,000 within the first 24 hours.


This approach mirrors the NEFT model, where a maximum of Rs 50,000 can be transferred within the first 24 hours of activation.

As the government endeavors to fortify the digital payment ecosystem, this initiative seeks to empower users with the ability to promptly address and rectify erroneous transactions, contributing to a more secure and resilient financial landscape.

- Advertisement -


Please enter your comment!
Please enter your name here


More Articles